Commentary: Building A New Economy

Candidate Terry McAuliffe promised during his campaign for governor that he would work to build a new economy in Virginia. A reduction of federal spending in the state along with the decline of traditional mining and manufacturing jobs had left the Virginia economy sluggish.

If there was any doubt as to what Governor McAuliffe had in mind one only needs to look at his performance in office. His latest performance figures, although these numbers increase daily, are 1,027 new projects, 215,100 jobs created and $165 billion in capital investments. No other governor has come close to these kinds of numbers. But he clearly is not done yet.

Just last week Governor McAuliffe announced that Facebook will bring more than $1 billion of new investment to the Commonwealth. Facebook is directly investing $750 million to establish a 970,000-square-foot data center in the White Oak Technology Park in Henrico County. The project will bring thousands of construction jobs to the region and more than 100 full-time operational jobs. Virginia is already a leader in data centers with a record number in Loudoun County.

An exciting aspect to this new project is that with a new renewable energy tariff designed by Dominion Energy Virginia and Facebook, hundreds of millions of additional dollars will be invested in the construction of multiple solar facilities in the Commonwealth to service Facebook’s Henrico data center with 100 percent renewable energy. That feature continues a trend that has been going on in Virginia in the use of solar-generated electricity with new and expanded business projects. In another project, Amazon is behind what had been the state’s largest planned solar installation to date, an 80-megawatt system in Accomack County. Early last year another solar project was introduced that spurred Virginia’s solar energy market by a partnership among the state, Dominion Virginia Power and Microsoft Corp. to bring a 20-megawatt solar farm to Fauquier County. The 260,000 panels on 125 acres represented more solar energy than was available across all of Virginia two years ago.

Recent evidence demonstrates that the new economy of the Commonwealth is being recognized nationally. Recently Virginia was ranked in Area Development magazine’s 2017 “Top States for Doing Business” annual survey for the first time since 2010. Overall, the Commonwealth placed 11th out of 20 states ranked in the prestigious annual site consultants’ survey.

The Commonwealth ranked in the “Top 10” in five of 12 subcategories that impact companies’ location and facility plans, including: Cooperative & Responsive State Government, fifth; Leading Workforce Development Programs, seventh; Competitive Labor Environment, eighth; Favorable Regulatory Environment, ninth; and Speed of Permitting, ninth. These rankings represent significant advances for Virginia as the state has not placed in any subcategories since 2013. This year also marks the first time Virginia has ever placed in the Cooperative & Responsive State Government, Competitive Labor Environment, and Speed of Permitting categories.

The new economy is proving to be good for jobs with record low unemployment and good for communities that were struggling to recover from the Great Recession. At the same time it is good for the environment with record growth in solar energy production.